The renegotiation of regulatory contracts is known to prevent regulators from achieving the full commitment efficient … outcome in dynamic contexts. However, assessing the cost of such renegotiation remains an open issue from an empirical … viewpoint. To address this question, we fit a structural principal-agent model with renegotiation on a set of urban transport …

economy whose government uses optimal taxation to provide a public good, defense. The East is a centrally planned economy …. Utility depends on consumption, leisure and defense; defense is a characteristic which is an increasing function of the …

default threat, creditors can make a take-it-or-leave-it debt haircut offer to the sovereign. The risk of renegotiation is …

circumstances where a renegotiation of the contract benefits all parties involved and non-renegotiation-proofness destroys its … credibility as a commitment device. But the contract’s strength is that renegotiation can be very visible and this facilitates a … extraction problem. This is solved by a ‘Walsh contract’ which links the income of the central bank to observed macroeconomic …

barter involves high transaction costs. The main innovation of our work is to allow renegotiation between the firm and its … renegotiation still provides ex ante incentives to use barter. We show that the greater the debt overhang, the more likely the use …

In the contract-theoretic literature, there is a vital debate about whether contracts can mitigate the hold-up problem … when renegotiation cannot be prevented. Ultimately, the question has to be answered empirically. As a first step in that … benefit the non-investing party. While according to standard theory, contracting would be useless if renegotiation cannot be …

suggests that they should experience comparatively larger gains. However, if renegotiation possibilities are limited by … Socio-Economic Panel indeed shows that, as long as renegotiation opportunities are limited, comparatively better wages for …

effort. These contracts are optimal if the entrepreneur has the bargaining power in renegotiation. If the investor has the … bargaining power, the same is true unless debt induces excessive effort. In the latter case, a non-debt simple contract achieves …

exists a contract which is preferred by everyone, the former contract could not have been renegotiation proof. For private …By offering or choosing a contract the informed agent might reveal information to the principal which could be used for … immediate renegotiation. This is discussed in an axiomatic approach. We show that if, given the revealed information, there …

When drawing up a contract, it is often impracticable to specify all the possible relevant contingencies, and so … contract a mechanism for revising the terms of trade. One striking conclusion of the analysis is that because the parties can … rescind the original contract and negotiate a new one, severe limitations are placed on the form the revisions can take …